question archive Using combined depreciation and investment cost determine the probable cost per hour of owning and operating a caterpillar that uses rubber tires
Using combined depreciation and investment cost determine the probable cost per hour of owning and operating a caterpillar that uses rubber tires
Subject:AccountingPrice: Bought3
Using combined depreciation and investment cost determine the probable cost per hour of owning and operating a caterpillar that uses rubber tires. The equipment is a 185-hp diesel engine and the following conditions apply. (40)
Factor delivered price = $ 472,550
Sales tax = 6.5% of delivered price
Unloading and assembling = $2,175
Salvage value = $ 115,000
Useful life = $ 6 yr.
Hours used per year = 1,675 hr
Interest on investment = 9.5%
Maintenance and repair = 65% of straight line depreciation
Diesel engine = 185 hp
Operating factor = 0.60
Fuel cost = $5.45/gal
Crankcase capacity = 9 gal
Hours between oil changes = 135 hr.
Oil cost = $14.25/gal
Tires = $ 62,500
Tire life = 4950 hr.
Tire repairs = 12% of tire depreciation
Using information from above, assume that an operator will cost $ 26.64/hr. and
requires an assistant that is paid 2/3 the operators cost per hour. The operator and assistant can deliver 75 sq. ft. demolition in an hour. What is the total equipment and cost and the equivalent sq. ft. cost per hour.
